Rowan Companies (RDC) Misses On Q1 Earnings, Beats Revenues

Global provider of contract drilling services, Rowan Companies plc (NYSE:RDC) reported adjusted first-quarter 2017 earnings from continuing operations of 7 cents per share, which lagged the Zacks Consensus Estimate of 13 cents. The decline was mainly due to a considerable decline in dayrates, partially offset by higher rig utilization. The bottom line also deteriorated significantly from the year-ago quarter profit of 98 cents per share.

Total revenue was $374.3 million in the first quarter as against $500.2 million in the prior-year quarter. Revenues, however, beat the Zacks Consensus Estimate of $362.2 million.

Dayrates and Utilization

The company's deepwater rigs had a dayrate of $592,100 compared with $612,400 in the year-ago quarter. Jackup rigs saw a dayrate of $135,700 as against $182,300 in the prior year.

The overall dayrate of all rigs was $203,500 compared with $266,000 in first-quarter 2016. Average utilization of the company's rigs was 75% as against 73% in the comparable quarter last year.

Total Expenses

For the quarter, the company reported $296.5 million in costs as against $332.8 million in the year-ago comparable period.

Financials

As of Mar 31, 2017, the company's cash balance was $1,173.2 million and long-term debt (including current maturities) was $2,552.5 million. The long-term debt-to-capitalization ratio was 32.4%.

Zacks Rank

Rowan carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are SunCoke Energy, Inc. (NYSE:SXC) , China Petroleum & Chemical Corporation (NYSE:SNP) and Bellatrix Exploration Ltd. (TO:BXE) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.

SunCoke Energy posted a positive earnings surprise of 120.0% in the preceding quarter. The company beat estimates in two of the four trailing quarters with an average negative earnings surprise of 35.78%.

Bellatrix Exploration posted a positive earnings surprise of 240.00% in the preceding quarter. It surpassed estimates in three of the four trailing quarters with an average positive earnings surprise of 58.54%.

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